Why in the world would you build an LNG import facility “if extraction carries risks if there isn’t an available domestic consumption market.”? And why, if you think there might not be a domestic gas consumption market, do you proceed to highlight all of those market opportunities? LNG import carries the same domestic market risk as in country gas development and, given the world wide demand for LNG, is likely to carry a higher delivered methane price than domestically produced gas.
Geography distance is the major issue, the Karroo is located far away from the larger population centers and South Africa in general is far away from the world's sea-lanes, Richards's bay is an exception given the existent domestic demand.
I am not against extraction, but I prefer it to follow after having an import market established. That way we will know what domestic consumption looks like. Even if the imported gas is initially more expensive, it can later be replaced with domestic supply. LNG at an international price is cheaper than the alternative, which is Diesel.
Why in the world would you build an LNG import facility “if extraction carries risks if there isn’t an available domestic consumption market.”? And why, if you think there might not be a domestic gas consumption market, do you proceed to highlight all of those market opportunities? LNG import carries the same domestic market risk as in country gas development and, given the world wide demand for LNG, is likely to carry a higher delivered methane price than domestically produced gas.
Geography distance is the major issue, the Karroo is located far away from the larger population centers and South Africa in general is far away from the world's sea-lanes, Richards's bay is an exception given the existent domestic demand.
I am not against extraction, but I prefer it to follow after having an import market established. That way we will know what domestic consumption looks like. Even if the imported gas is initially more expensive, it can later be replaced with domestic supply. LNG at an international price is cheaper than the alternative, which is Diesel.